Chapter 66

66.1105 Note NOTE: Subd. 5. was created as subd. 4. by 2023 Wis. Act 136 and renumbered to subd. 5. by the legislative reference bureau under s. 13.92 (1) (bm) 2.

66.1105(6)(g)6. 6. This paragraph does not apply to Tax Incremental District Number 4 in the city of Antigo.

66.1105 Note NOTE: Subd. 6. was created as subd. 4. by 2023 Wis. Act 137 and renumbered to subd. 6. by the legislative reference bureau under s. 13.92 (1) (bm) 2.

66.1105(6)(h) (h) For property values reported to the department of revenue in 2018, if a city erroneously reports a higher value increment for its tax incremental districts in an aggregate amount of at least $50,000,000, that city’s tax incremental districts may transfer the excess tax increments collected resulting from this error directly to the city’s general fund for the sole purpose of reimbursing taxpayers for the resulting erroneously higher property tax rates imposed on the taxpayers. A city that acts under this paragraph shall verify with the department of revenue the amounts being transferred and disbursed before those transactions may take place.

66.1105(6c) (6c) Notification of position openings.

66.1105(6c)(a) (a) Any person who operates for profit and is paid project costs under sub. (2) (f) 1. a., d., j. and k. in connection with the project plan for a tax incremental district shall notify the department of workforce development and the local workforce development board established under 29 USC 2832, of any positions to be filled in the county in which the city which created the tax incremental district is located during the period commencing with the date the person first performs work on the project and ending one year after receipt of its final payment of project costs. The person shall provide this notice at least 2 weeks prior to advertising the position.

66.1105(6c)(b) (b) Any person who operates for profit and buys or leases property in a tax incremental district from a city for which the city incurs real property assembly costs under sub. (2) (f) 1. c. shall notify the department of workforce development and the local workforce development board established under 29 USC 2832, of any position to be filled in the county in which the city creating the tax incremental district is located within one year after the sale or commencement of the lease. The person shall provide this notice at least 2 weeks prior to advertising the position.

66.1105(6m) (6m) Review.

66.1105(6m)(a) (a) The city shall cause a certified public accountant to conduct audits of each tax incremental district to determine if all financial transactions are made in a legal and proper manner and to determine if the tax incremental district is complying with its project plan and with this section. Any city that creates a tax incremental district under this section and has an annual general audit may include the audits required under this subsection as part of the annual general audit.

66.1105(6m)(b) (b) Audits shall be conducted no later than:

66.1105(6m)(b)1. 1. Twelve months after 30 percent of the project expenditures are made;

66.1105(6m)(b)2. 2. Twelve months after the end of the expenditure period specified in sub. (6) (am) 1.; and

66.1105(6m)(b)3. 3. Twelve months after the termination of the tax incremental district under sub. (7).

66.1105(6m)(c) (c) The city shall prepare and make available to the public updated annual reports describing the status of each existing tax incremental district, including expenditures and revenues. The city shall file a copy of the report with each overlying district and the department of revenue by July 1 annually. The copy of the report filed with the department of revenue shall be in electronic format. The annual report shall contain at least all of the following information:

66.1105(6m)(c)1. 1. The name assigned to the district under sub. (4) (gm) 3.

66.1105(6m)(c)2. 2. The declared classification of the tax incremental district under sub. (4) (gm) 6. and the scope of the project.

66.1105(6m)(c)3. 3. The name of any developer who is named in a developer’s agreement with the city or who receives any financial assistance from tax increments allocated for the tax incremental district.

66.1105(6m)(c)4. 4. The date that the city expects the tax incremental district to terminate under sub. (7).

66.1105(6m)(c)5. 5. The amount of tax increments to be deposited into a special fund for that district under sub. (6) (c).

66.1105(6m)(c)6. 6. An analysis of the special fund under sub. (6) (c) for the district. The analysis shall include all of the following:

66.1105(6m)(c)6.a. a. The balance in the special fund at the beginning of the fiscal year.

66.1105(6m)(c)6.b. b. All amounts deposited in the special fund by source, including all amounts received from another tax incremental district.

66.1105(6m)(c)6.c. c. An itemized list of all expenditures from the special fund by category of permissible project costs.

66.1105(6m)(c)6.d. d. The balance in the special fund at the end of the fiscal year, including a breakdown of the balance by source and a breakdown of the balance identifying any portion of the balance that is required, pledged, earmarked, or otherwise designated for payment of, or securing of, obligations and anticipated project costs. Any portion of the ending balance that has not been previously identified and is not identified in the current analysis as being required, pledged, earmarked, or otherwise designated for payment of, or securing of, obligations or anticipated project costs shall be designated as surplus.

66.1105(6m)(c)7. 7. The contact information of a person designated by the city to respond to questions or concerns regarding the annual report.

66.1105(6m)(c)8. 8. The value of new construction in the tax incremental district and the value of improvements removed from the tax incremental district.

66.1105(6m)(c)9. 9. An analysis of the impact on property taxes and levy limits resulting from the value of new construction less improvements removed in each tax incremental district. The analysis shall include all of the following:

66.1105(6m)(c)9.a. a. The values reported under subd. 8.

66.1105(6m)(c)9.b. b. The amount of the valuation factor under s. 66.0602 (1) (d) for the municipality that is attributable to the value reported under subd. 8. for each tax incremental district for the current year and for each of the previous years from January 1, 2023, to the current year.

66.1105(6m)(c)9.c. c. The amount of the valuation factor under s. 66.0602 (1) (d) for the municipality that is attributable to the total of the values reported under subd. 8. for all tax incremental districts in the municipality, expressed as a dollar amount and as a percentage.

66.1105(6m)(c)9.d. d. The amount of any increase in the municipality’s property tax levy attributable to the total of the values reported under subd. 8., expressed as a dollar amount per each $100,000 of increase in the levy.

66.1105 Cross-reference Cross-reference: See also s. Tax 12.60, Wis. adm. code.

66.1105(6m)(d) (d)

66.1105(6m)(d)1. 1. The department of revenue shall, by rule, designate a format for annual reports under par. (c) and shall require these reports to be filed electronically.

66.1105(6m)(d)2. 2. The department of revenue shall post annual reports on its official Internet site no later than 45 days after the department receives the report from the city. The department shall also post a list of cities that have not submitted a required annual report to the department of revenue.

66.1105(6m)(d)4. 4. If an annual report is not timely filed under par. (c), the department of revenue shall notify the city that the report is past due. If the city does not file the report within 60 days of the date on the notice, except as provided in this subdivision, the department shall charge the city a fee of $100 per day for each day that the report is past due, up to a maximum penalty of $6,000 per report. If the city does not pay within 30 days of issuance, the department of revenue shall reduce and withhold the amount of the shared revenue payments to the city under s. 79.02 (1), in the following year, by an amount equal to the unpaid penalty.

66.1105(7) (7) Termination of tax incremental districts. A tax incremental district terminates when the earlier of the following occurs:

66.1105(7)(a) (a) That time when the city has received aggregate tax increments with respect to the district in an amount equal to the aggregate of all project costs under the project plan and any amendments to the project plan for the district, except that this paragraph does not apply to a district whose positive tax increments have been allocated under sub. (6) (d), (dm), (e), or (f) until the district to which the allocation is made has paid off the aggregate of all of its project costs under its project plan.

66.1105(7)(ak) (ak)

66.1105(7)(ak)1. 1. Except as provided in par. (am) 1. and 4., for a district about which a finding is made under sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the district is a blighted area or an area in need of rehabilitation or conservation work, and if the district to which the plan relates is created after September 30, 1995, and before October 1, 2004, 27 years after the district is created.

66.1105(7)(ak)2. 2. Except as provided in par. (am) 4., for a district that is created after September 30, 1995, and before October 1, 2004, and that is not subject to subd. 1., 4., 5., or 6., 23 years after the district was created, and for a district that is created before October 1, 1995, 27 years after the district is created.

Effective date note NOTE: Subd. 2. is shown as amended eff. 1-1-25 by 2023 Wis. Acts 137 and 138 and as merged by the legislative reference bureau under s. 13.92 (2) (i). Prior to 1-1-25 it reads:

Effective date text 2. Except as provided in par. (am) 4., for a district that is created after September 30, 1995, and before October 1, 2004, and that is not subject to subd. 1., 4., 5., or 6., 23 years after the district was created, and, except as provided in subd. 3., for a district that is created before October 1, 1995, 27 years after the district is created.

66.1105(7)(ak)3. 3. For Tax Incremental District Number 2 in the city of Racine, 37 years after the district is created.

Effective date note NOTE: Subd. 3. is repealed eff. 1-1-25 by 2023 Wis. Act 138.

66.1105(7)(ak)4. 4. For Tax Incremental District Number 1 in the village of Weston, 33 years after the district is created.

66.1105(7)(ak)5. 5. For Tax Incremental District Number 1 in the village of Marathon City, 33 years after the district is created.

66.1105(7)(ak)6. 6. Except as provided in par. (am) 4., for Tax Incremental District Number 4 in the city of Antigo, 32 years after the district is created.

66.1105(7)(am) (am)

66.1105(7)(am)1. 1. Except as provided in subd. 4., for a district described under par. (ak) 1., the time period specified in that subdivision, except that the city that created the district may, subject to sub. (8) (e), request that the joint review board extend the life of the district for an additional 4 years. Along with its request for a 4-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 27 years after the district is created. The joint review board may deny or approve a request to extend the life of the district for 4 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 4 years if the request includes the audit. If the joint review board extends the district’s life, the district shall terminate at the earlier of the end of the extended period or the period specified in par. (a).

66.1105(7)(am)2. 2. Except as provided in subds. 4., 5., 6., 7., and 9., for a district that is created after September 30, 2004, about which a finding is made under sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the district is suitable for industrial sites or mixed-use development, 20 years after the district is created, except that the city that created the district may, subject to sub. (8) (e), request that the joint review board extend the life of the district for an additional 3 years. Along with its request for a 3-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 20 years after the district is created. The joint review board may deny or approve a request to extend the life of the district for 3 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 3 years if the request includes the audit. If the joint review board extends the district’s life, the district shall terminate at the earlier of the end of the extended period or the period specified in par. (a). For a tax incremental district created after March 3, 2016, the termination date for a district to which this subdivision applies shall either be increased by one year beyond the otherwise applicable termination date under this subdivision if that district’s project plan is adopted under sub. (4) (g) after September 30 and before May 15, or shall be the period specified in par. (a), whichever is earlier.

66.1105(7)(am)3. 3. Except as provided in subds. 4. and 8., for a district that is created after September 30, 2004, about which a finding is made under sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the district is a blighted area or in need of rehabilitation, 27 years after the district is created, except that the city that created the district may, subject to sub. (8) (e), request that the joint review board extend the life of the district for an additional 3 years. Along with its request for a 3-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 27 years after the district is created. The joint review board may deny or approve a request to extend the life of the district for 3 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 3 years if the request includes the audit. If the joint review board extends the district’s life, the district shall terminate at the earlier of the end of the extended period or the period specified in par. (a). For a tax incremental district created after March 3, 2016, the termination date for a district to which this subdivision applies shall either be increased by one year beyond the otherwise applicable termination date under this subdivision if that district’s project plan is adopted under sub. (4) (g) after September 30 and before May 15, or shall be the period specified in par. (a), whichever is earlier.

66.1105(7)(am)4. 4.

66.1105(7)(am)4.a. a. At any time during the district’s existence, but subject to sub. (8) (e), the city that created the district described under subd. 1., 2., or 3. or par. (ak) 1., 2., or 6. may request that the joint review board extend the life of the district for an additional 3 years in addition to an extension authorized under subd. 1., 2., or 3., if during the district’s existence, the annual and total amount of tax increments to be generated over the life of the district are adversely impacted by 2013 Wisconsin Act 145.

66.1105(7)(am)4.b. b. Together with its request for a 3-year extension under this subdivision, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the time specified under subd. 1., 2., or 3., whichever is applicable. The joint review board may deny or approve the request if the request does not include the independent audit, and the board shall approve the request if the request includes the audit. If the joint review board extends the district’s life, the district shall terminate at the earlier of the end of the extended period or the period specified in par. (a).

66.1105(7)(am)5. 5. For Tax Incremental District Number 1 in the village of Caledonia, 37 years after the district is created.

66.1105(7)(am)6. 6. For Tax Incremental District Number 4 in the village of Caledonia, 30 years after the district is created.

66.1105(7)(am)7. 7. For Tax Incremental District Number 3 in the village of Lake Delton, 37 years after the district is created.

66.1105(7)(am)8. 8. For Tax Incremental District Number 4 in the village of Lake Delton, 37 years after the district is created.

66.1105(7)(am)9. 9. For Tax Incremental District Number 2 in the village of Kronenwetter, 25 years after the district is created.

66.1105(7)(ar) (ar) Notwithstanding par. (am), 35 years after the district is created if it was created before October 1, 1995, and if the project plan is amended under sub. (4) (h) 4.

Effective date note NOTE: Par. (ar) is repealed eff. 1-1-25 by 2023 Wis. Act 138.

66.1105(7)(as) (as) Notwithstanding par. (am), 35 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created before October 1, 1995, and sub. (6) (d) applies to the district.

66.1105(7)(at) (at) Notwithstanding par. (am), 31 years after the district is created if the district is created before October 1, 1995, and the expenditure period is specified in sub. (6) (am) 2. c.

Effective date note NOTE: Par. (at) is repealed eff. 1-1-25 by 2023 Wis. Act 138.

66.1105(7)(au) (au) With regard to a distressed, or severely distressed, tax incremental district under sub. (4e), the time period specified in sub. (4e) (d) 2.

66.1105(7)(b) (b) The local legislative body, by resolution, dissolves the district at which time the city becomes liable for all unpaid project costs actually incurred which are not paid from the special fund under sub. (6) (c), except this paragraph does not make the city liable for any tax incremental bonds or notes issued.

66.1105(8) (8) Notice of district termination, reporting requirements.

66.1105(8)(a) (a) A city which creates a tax incremental district under this section shall give the department of revenue written notice within 60 days of the termination of the tax incremental district under sub. (7).

66.1105(8)(b) (b) If the department of revenue receives a notice under par. (a) during the period from January 1 to April 15, the effective date of the notice is the date the notice is received. If the notice is received during the period from April 16 to December 31, the effective date of the notice is the first January 1 after the department of revenue receives the notice.

66.1105(8)(c) (c) After a city transmits to the department of revenue the notice required under par. (a), the city and the department shall agree on a date by which the city shall send to the department, on a form prescribed by the department, all of the following information that relates to the terminated tax incremental district:

66.1105(8)(c)1. 1. A final accounting of all expenditures made by the city.

66.1105(8)(c)2. 2. The total amount of project costs incurred by the city.

66.1105(8)(c)3. 3. The total amount of positive tax increments received by a city.

66.1105(8)(c)4. 4. The total amount of project costs, if any, not paid for with tax increments that became obligations of the city after the district was terminated.

66.1105(8)(d) (d) If a city does not send to the department of revenue the form specified in par. (c) within the time limit agreed to by the city and the department under par. (c), the department may not certify the tax incremental base of a tax incremental district under sub. (5) (a) and (b) until the form is sent to the department.

66.1105(8)(e) (e) A city shall notify the department of revenue at least one year before the date on which a tax incremental district is required to terminate under sub. (7) (am) if a joint review board approves a request to extend the life of the district under sub. (7) (am). If a city does not notify the department of revenue by that date, the department may deny the extension.

66.1105(9) (9) Financing of project costs.

66.1105(9)(a) (a) Payment of project costs may be made by any one or more of the following methods:

66.1105(9)(a)1. 1. Payment by the city from the special fund of the tax incremental district;

66.1105(9)(a)2. 2. Payment out of its general funds;

66.1105(9)(a)3. 3. Payment out of the proceeds of the sale of bonds or notes issued by it under ch. 67;

66.1105(9)(a)4. 4. Payment out of the proceeds of the sale of public improvement bonds issued by it under s. 66.0619;

66.1105(9)(a)5. 5. Payment as provided under s. 66.0713 (2) and (4) or 67.16;

66.1105(9)(a)6. 6. Payment out of the proceeds of revenue bonds or notes issued by it under s. 66.0621;

66.1105(9)(a)7. 7. Payment out of the proceeds of revenue bonds issued by it under s. 66.0913;

66.1105(9)(a)8. 8. Payment out of the proceeds of the sale of tax incremental bonds or notes issued by it under this subsection; or

66.1105(9)(a)9. 9. Payment out of the proceeds of revenue bonds issued by the city as provided by s. 66.1103, for a purpose specified in that section.

66.1105(9)(a)10. 10. With regard to a tax incremental district created by a 1st class city, payment out of the proceeds of revenue bonds issued by a redevelopment authority acting in concert with the city pursuant to a contract under s. 66.0301.